A U.S. senator has just told you that for a generous contribution to her reelection fund, she would ignore your company’s appare
1 answer:
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Answer:
6251 tapes
Explanation:
Given: fixed cost is $10,000.
Variable cost is $0.40 to produce each tape.
Selling price is $2 per tape.
Lets assume number of tapes to be produced and sold be "x"
We know, Total cost=
∴ Total cost=
Total cost=
As given, selling price is $2 per tape.
∴ For attaining break even point, Tota cost = Selling price.
Solving the equation to find the value of x
⇒
Subtracting both side by 0.4x
⇒
Dividing both side by 1.60
⇒
∴ x= 6250
Hence, number of tapes must be sold and purchased is 6250 to attain break even in the business, however selling one more tapes will get profit is 6251.